A historic fall. During the night from Thursday to Friday, Tesla considerably lowered the price of its two most popular models, the Model 3 and the Model Y. In France, but also in other markets in Europe or the United States, often with a new price than to benefit. state aid.
Discount of 13,500 euros for the Model 3
For the Model 3, the discount is impressive. Starting at €53,500, the basic version is now offered at a final price of €39,990, a discount of €13,500. With this double effect: the price drop to 44,990 euros once again allows the saloon to benefit from the ecological bonus, which does not affect new models sold at more than 47,000 euros. Result: the public subsidy barely allows it to go below 40,000 euros, approaching its 2021 floor price with the SR+ at 36,800 euros.
The same mechanism in the SUV Model Y, with a price ranging from 49,990 euros (the old bonus ceiling reduced in 2022 was 50,000 euros), up to 46,990 euros. Without taking an option, the client will also be able to benefit from the 2023 bonus and obtain a final price of 41,990 euros.
What competitors?
It is always difficult to compare Tesla with other manufacturers, since the American company offers a different experience on several levels. Often compared to premium brands, such as the German BMW, Mercedes or Audi, its price positioning in its most affordable models also places Tesla in direct competition with certain general brands.
Even more so with the price drop: if we oppose the Model 3 to the latest Renault Mégane E-Tech (sold exclusively in 100% electric), the Frenchman can continue to appear competitive with its starting price at 39,000 euros, and therefore deduct 34,000 euros bonus. But the Mégane is still smaller at 4.20 meters, almost 50 centimeters less than the Model 3, and above all it shows performance well below (130 horsepower, 40 kWh battery with a range of about 300 km and recharging power “fast” limited to 85 kilowatts)
To achieve a range closer to that of the Tesla sedan (491 km), it is better to look at a second trim level version (techno), which offers about 450 km of range and a charging power of up to 130kW. Problem: we have already exceeded the price of the Model 3, while some options would still have to be added to get closer to the American in terms of equipment.
The same observation if we look at Peugeot and its 2008 SUV, offered in a 100% electric version, but again shorter than the Model 3/Model Y duo with a length of 4.30 meters. And if the basic version is sold from 39,940 euros (34,940 euros discounted bonus), rather you have to count 44,420 euros (39,420 euros discounted bonus) in high-end GT finish and adding some equipment. Slightly lower price, but we are still a long way from Tesla’s standards in terms of performance and autonomy.
At Volkswagen, the ID.4 with a 77 kWh battery, and therefore greater autonomy than the Model Y (526 km compared to 455 km), currently starts at 51,900 euros. Therefore, it is already more expensive and is not eligible for the ecological bonus in France.
Tesla, between low-cost and premium?
If we only stay with the price criterion, one model is necessarily a must at the beginning of 2023: the MG4. At 4.28 meters, the Chinese saloon (MG belongs to the SAIC group) is still much shorter than a Model 3, but shows a starting price of 28,990 euros (23,990 euros discounted bonus). Taking the latest trim level and the options it offers to get closer to a Tesla, specifically with a range that increases from 350 to 435 km, the price remains very competitive, at 35,990 euros (30,990 euros discounted bonus), but still far from the services found in Tesla.
On the contrary, in premium, what is the difference with the competitors? A BMW i4 already offers a good level of performance: the German sedan starts at 53,550 euros with 286 horsepower and a range of 478 km. Rather we will compare it with a Model 3 Performance, sold from 59,990 euros. A price that also dropped 10,000 euros overnight from Thursday to Friday. Enough so that the most powerful Model 3 is also more interesting than the most efficient versions of the i4, with 340 horsepower starting at 61,500 euros.
It remains to be seen how the competition will react, between general and premium brands.
“Tesla is coming to put pressure on everyone. When you have a competitor that lowers prices looking for volume, it puts competitors in an awkward position, when they expected ‘pricing’ [un environnement de prix] favorable to electric vehicles,” a financial analyst reacted to our colleagues at the BFM Bourse.
Source: BFM TV
